Global Sukuk Market 2016-2020
Sukuk comes from the word "sakk" which is considered an investment certificate that follows Islamic financing principles. The sukuk helps to facilitate trade transactions as this serves as a promissory note among merchants. The issuer of the sukuk sells the certificate to an investor group. This investor group rents the certificate back to the issuer at a predetermined fee. The issuer of the certificate makes a contractual promise to buyback the certificate at a future date at par value.
Technavio’s analysts forecast the global sukuk market to grow at a CAGR of 8.51% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global sukuk market for 2016-2020. To calculate the market size, the report considered revenue generated from the sale of industrial agitators to process industries.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Sukuk Market 2016-2020
Technavio recognizes the following companies as the key players in the global sukuk market: Abu Dhabi Islamic Bank, Al Baraka Bank, Al Rajhi Bank, Dubai Islamic Bank, HSBC, Kuwait Finance House, Maybank, Qatar International Islamic Bank and Samba.
Other Prominent Vendors in the market are: Bank Mandiri, and PT. Asuransi Jiwa BRINGIN JIWA SEJAHTERA.
Commenting on the report, an analyst from Technavio’s team said: “One of the key trends for market growth will be expansion of employment opportunities and technical expertise. Outsourcing and white labelling activities have emerged in significant volumes in this market. Islamic finance market players should consistently formulate different solutions and strategies in the interest of gaining greater efficiency and shorter time to market. Most of the mature and developing Islamic markets are facing shortages in technical expertise in terms of product innovation and in driving sales. Consequently, potential markets (such as GCC and APAC) are striving to obtain technical expertise that can spur innovation in Islamic finance products. Therefore, the market offers significant opportunity for active and experienced Islamic players that can leverage competitive strengths in new markets and can become either an outsourcing partner or white labelling provider.”
According to the report, increasing market prospects will be a key driver for market growth. Islamic products have low market penetration in the current market scenario. We expect top vendors in the market to start providing different Islamic products and this should enhance their growth strategies. The Sukuk market is one of the most significant investment avenues and is also a key supporting factor that may power high growth in the Islamic finance industry. The issuance of Sukuk with longer tenures should match investments and risk management needs with long-term liability, and this marriage may boost growth of investment-linked products.
Further, the report states that different interpretation of Shariah laws will be a challenge for the market. The development of Islamic finance products has taken root in two key geographical areas: Southeast Asian countries and the Middle East. This has spurred developments in two different directions. The Middle East applies stricter interpretations of Shariah laws than Southeast Asian countries; for instance, Malaysia operates more flexible interpretations of the Quran than other nations, but we have to bear in mind that the Shia and Sunni denominations subscribe to different interpretations of the Quran.
Abu Dhabi Islamic Bank, Al Baraka Bank, Al Rajhi Bank, Dubai Islamic Bank, HSBC, Kuwait Finance House, Maybank, Qatar International Islamic Bank Samba,Bank Mandiri, and PT. Asuransi Jiwa BRINGIN JIWA SEJAHTERA.
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